By Steve Hill
Constant, seismic change is disrupting a range of industries at unprecedented speed. This environment presents challenges, but also opportunities, for companies with the agility to adapt and grow. Today, leading organizations are undertaking major, transformational changes, from rethinking core functions to embracing new technologies.
Any successful transformation starts with a clear strategy, grounded in an understanding of emerging trends. At KPMG, we track signals of change across four dimensions: social, technological, economic and political (STEP). We analyze the potential impact of these signals to help our clients and guide our own innovation investment strategy.
Over the past decade, we have identified compelling signals that led to strategic investments and new opportunities. But we’ve also learned that viewing any of these signals in isolation risks missing the bigger picture, as new technologies and trends often converge to transform the very nature of an industry and how those in it need to respond.
What trends are on our radar now? Our latest piece shares five of the signals we are tracking that could significantly impact the business landscape.
1. Data as a key strategic asset – Companies with data-driven business models are consistently outperforming their rivals. Data strategy is no longer just about protection or compliance – now, leading companies are using data to create new growth opportunities and customer experiences that fundamentally change the value dynamic. To stay competitive today, companies need to develop a true data strategy and proprietary data assets.
2. AI and the productivity landscape – Most organizations are still struggling to deploy AI at scale. But over time, AI could reshape the productivity landscape, which has been characterized by slow growth across many developed economies. Leaders should consider what actions they can take today to avoid potentially falling behind on the AI learning curve.
3. Blockchain – We see two blockchain use cases with the potential to revolutionize markets and enterprises in the long-run: tokenization and enterprise decentralization.
4. 5G – The fifth generation (5G) of wireless technology promises to change the way we live and work. While the full impact of 5G is still a few years away, smart leaders are already identifying 5G applications and creating strategic alliances.
5. Quantum computing – Although we are still at least five years away from commercial applications, the eventual impact of quantum computing will be profound, including the disruption of standard cybersecurity practices.
To set-up time to talk to Steve in more depth, please contact Stephanie Trefcer.